Tippecanoe County’s financial consultant delivered a detailed briefing to the Council and Board of Commissioners on Jan. 13, saying the county’s general-fund balance fell short of earlier projections after 2025 expenses — particularly health-insurance costs — outpaced revenue.

"Expenses outstripped the revenues in 2025," the consultant said, summarizing the primary driver of the revised ending balance. Auditor Jennifer told the group the general fund began 2026 with a cash balance of $18,734,718 and staff adjusted several assumptions (including a projected increase in circuit-breaker credits). Treasurer Eudira reported December investment balances and noted recent rate drops will likely reduce interest income in 2026.

The consultant highlighted several structural pressures: higher group-health claims and stop-loss exposures, likely lower interest income after late-2025 rate cuts, reduced expected property-tax realizations because of circuit-breaker credits, and possible state-level changes that would lower county local-income-tax caps and transfer township duties to counties in some scenarios. He said the council should begin budget work immediately — starting department-level reviews in February — rather than waiting until the summer budget cycle.

Options discussed included increasing revenue (the consultant revisited a prior recommendation for a 0.1% correctional-facility tax, which he estimated could generate about $6.2 million) and targeted expense reductions across departments. He also recommended the council and commissioners coordinate on a strategy for group health insurance and to consider modest, steady premium increases rather than a single large change.

Council members and department heads agreed to convene focused budget sessions and to update the county’s sustainability analysis once audited 2025 figures are reconciled.